Last week we saw the UK Autumn Budget 2024 outline numerous measures to support the transition to a low-carbon economy, signalling the government’s commitment to the mission of making the UK a clean energy superpower. Some of the tools include regulatory efficiencies to facilitate project development and financial resources to crowd-in funding solutions. The government committed to kick-starting innovations like carbon capture, utilisation and storage (CCUS), support for the first round of electrolytic hydrogen production contracts, continuing the Small Modular Reactor competition, and extending the Advanced Fuels Fund for sustainable aviation fuel (SAF) producers, as well as working to develop a robust and efficient grid connection process to manage the power generated. 

This week, the UK government has appeared to resolve its stance on  including waste incineration in the Emissions Trading System (UK ETS) which has been fraught with conflicting environmental, economic, and regulatory considerations. The UK Climate Change Committee has come out in favour of including waste incineration plants in the UK ETS, likely starting in 2028. Data on the significant volume of CO2 emissions from burning plastics and the potential for reaching the UK’s net zero goals through energy-from-waste initiatives were some of the material factors for considering the extension of the ETS to waste incinerators. 

Who knows what next week will bring, with more policy and regulatory announcement anticipated on environmental matters, including updates from COP 29. The rush to make commitments before the end of 2024 may seem too much too soon, but when 2025 starts, so will the reckoning for all of the 2030 commitments around the world, including achieving the UN Sustainable Development Goals. Stay tuned as we will keep you posted on the latest developments in this area.